Third Circuit Restores Insurance Exchange Manager Fee Litigation

A federal appeals court revived a suit by insurance policyholders against the entity managing a reciprocal insurance exchange, concluding it was different enough from past litigation to continue.

Because the policyholders’ claims were based on events that occurred after previous litigation against Erie Indemnity Co. was filed, federal court judgments in the earlier litigation didn’t preclude the most recent suit, the US Court of Appeals for the Third Circuit said in a Tuesday opinion vacating the district court’s preliminary injunction order.

Subscribers of Erie Insurance Exchange sued Erie Indemnity in Pennsylvania state court in 2021, alleging the manager breached its ...